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| Author: | Johnson, R. Soenen, L. |
| Title: | Evaluating the impact of investment projects on the firm's currency exposure |
| Journal: | Managerial Finance
1994 : VOL. 20:7, p. 51-58 |
| Index terms: | INVESTMENT CURRENCY CAPITAL BUDGETING |
| Language: | eng |
| Abstract: | The purpose of this article is to extend the capital budgeting process with an explicit consuderation and quantification of the impact of investment projects on the overall currency exposure of the firm. Section two deals with the measurement of economic exposure and shows how new investment projects may significantly alter that exposure. Section three presents an example to illustrate the importance of going beyond NPV by evaluating an investment project that changes the return/risk trade-off for the firm's currency portfolio. |
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